Knowing how much your property is worth can be helpful in many different situations, including real estate transactions and eminent domain cases. But how can you find out how much your property is worth? With a combination of fair market value, appraised value, and assessed value.
Fair Market Value
Real estate agents assess fair market value by looking at how much buyers have paid for properties similar to yours. Understanding the fair market value of your property is a great place to start, but to know how much your property is truly worth, you will need to do more than compare the value of your property to comparable ones.
Appraised Value
When calculating the appraised value of your property, a licensed appraiser will consider the location, size, and condition of your home or business, as well as any renovations you have completed.
Mortgage lenders use the appraised value of property in purchases and refinancing agreements.
Assessed Value
For a full idea of what your property is worth, you will need to consider property taxes, as well. Tax assessors will consider home improvement, income you generate from the property, and tax exemptions to generate the assessed value of your property.
Typically, the assessed value of your home will be lower than the appraised value, which is why you should always consider each type of valuation.
Determining Your Home’s Value for Real Estate Transactions
If you want to buy or sell a home, you can start by entering your address into a home value estimator for a quick estimate. Automated valuation models (AMVs) use algorithms and public data to estimate the value of your home. Because methodology varies, each provider may give you a slightly different estimate.
Try using Zillow, Realtor.com, Redfin, Chase, and RE/MAX to get a good idea of what your home may be worth. Keep in mind that buyers can use this service, as well.
If you are serious about selling, ask a real estate agent for a comparative market analysis (CMA). Most agents offer CMAs for free in hopes of winning your business. Although these estimates come from local experts, they may vary, as well.
For this reason, you should also check your county or municipal auditor’s website to understand your home’s value from a tax perspective, identify trends using the Federal Housing Finance Agency’s House Price Index (HIPI) calculator, and hire a professional appraiser.
Hiring a professional appraiser will yield the most reliable estimate, as appraisers have licenses and certifications from the state and provide objective opinions on the value of your home. Mortgage lenders use appraisers to determine the value of a house.
Determining your home’s value is the first step in selling your property. If you face any major issues along the way, you may need to hire a real estate attorney.
Getting Just Compensation in Eminent Domain Cases
Eminent domain is the power of the government to take private property and convert it into public use. Fortunately, the government cannot employ eminent domain without providing you with “just compensation,” per the Fifth Amendment of the United States Constitution.
Government agencies use an appraiser to determine the value of your property, but at Allen, Semelsberger & Kaelin LLP, we know that an appraisal only covers a fraction of what is fair.
We use our extensive network of appraisers, engineers, environmental experts, and city planners to help ensure you get the highest possible compensation for your property.
Never accept the first offer in an eminent domain case. Instead, call us at (888) 998-2031 for a free consultation.
We have been handling eminent domain cases since 1987 and collected more than $300 million for our clients. Our attorneys are confident in their ability to help you, too!
Ready to get started? Call today or send us a message online.